The Consistency Rule ensures that you don’t rely on large, risky trades to hit your profit target. Instead, it measures your ability to maintain steady, consistent profits over time. Here’s how it works:
Example Calculation:
Let’s assume you are trading with a $25,000 account, aiming for an $2,000 profit (8%). According to the consistency rule, your maximum daily profit should not exceed 45% of your total profit.
Target Profit: $25,000 x 0.08 = $2,000 (Profit Target)
Max Daily Profit: $2,000 x 0.45 = $900 (45% of total profit)
Scenario:
You hit your target and reach a total profit of $2,000. But in one day, you make $1,200 (which is more than 45% of the total profit).
Result: You haven't met the consistency rule, but you haven’t failed the challenge either. You now need to keep trading while ensuring that future daily profits don't exceed your previous highest day (for example, if your best day was $1,000, make sure your daily profits do not exceed that).
Solution:
Aim to keep your best daily profit below 45% of your profit target.
Showcase consistency and discipline by making smaller, more consistent profits.
Final Result:
You pass the challenge by demonstrating consistent, steady profitability without relying on risky, high-reward trades.
This is how the Consistency Rule ensures you’re not just lucky—you’re a disciplined, consistent trader.